22nd Century Group Preliminarily Reports Third Quarter Financial Results

Expected gross profit turns positive, while operating and net losses narrow compared with the second quarter.

Rhea-AI Summary

22nd Century Group (XXII) reported preliminary third-quarter 2026 results, expecting net revenue to rise 66% from the prior quarter.

For continuing operations in the quarter ended September 30, the company expects revenue of approximately $4.8 million, versus $2.9 million, and gross profit of approximately $0.4 million, versus a $0.3 million loss. Expected operating and net losses are each $2.6 million, versus $3.3 million each in the second quarter. Expected adjusted EBITDA loss, a non-GAAP earnings measure, is $2.2 million, versus $3.5 million. Operating expenses are expected to remain $3.0 million.

Quarter-end cash and equivalents were $3.9 million. As of October 22, 2026, common shares outstanding totaled 3,416,441, with no warrants outstanding. These estimates are unaudited and subject to change; the company anticipates releasing third-quarter earnings on or before November 13, 2026.

5 points · 0 major

PositiveiHow this balance works

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0 major · 1 point

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate point. Forward-looking: it has not happened yet and may not happen.Expected Q3 net revenue rises 66% to approximately $4.8 million, versus $2.9 million in Q2 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expected Q3 gross profit reaches approximately $0.4 million, versus a $0.3 million loss in Q2 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expected Q3 operating loss narrows to $2.6 million, versus $3.3 million in Q2 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expected Q3 net loss narrows to $2.6 million, versus $3.3 million in Q2 2026.
• Moderate point. Forward-looking: it has not happened yet and may not happen.Expected Q3 adjusted EBITDA loss narrows to $2.2 million, versus $3.5 million in Q2 2026.

Negative

• Minor point. Forward-looking: it has not happened yet and may not happen.Preliminary estimates remain subject to final review and closing and audit procedures; actual results may differ materially.

News Explained

22nd Century Group reports preliminary, unaudited third-quarter results, with cash and equivalents at $3.9 million at quarter-end, below the $6,058,000 reported at June 30, 2026; the disclosed cash balance therefore ended the quarter lower than the prior quarter.

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Key Figures

Net revenue: $4.8 million Gross profit: $0.4 million Operating loss: $2.6 million +4 more

Net revenue

$4.8 million

Expected preliminary Q3 2026; compared with $2.9 million in Q2, a reported 66% increase

Gross profit

$0.4 million

Expected preliminary Q3 2026; compared with a $0.3 million loss in Q2

Operating loss

$2.6 million

Expected preliminary Q3 2026; compared with $3.3 million in Q2

Net loss

$2.6 million

Expected preliminary Q3 2026; compared with $3.3 million in Q2

Adjusted EBITDA loss

$2.2 million

Expected preliminary Q3 2026; compared with $3.5 million in Q2

Cash and equivalents

$3.9 million

At Q3 2026 quarter end

Common shares outstanding

3,416,441 shares; no warrants outstanding

As of October 22, 2026

Previous Earnings Reports

1 past event · Latest: Aug 13

Same Type 1 event

1. Aug 13

   Q2 earnings

   24h Move

   -4.6%

   Q2 reported $2.9 million revenue, $0.3 million gross loss and $3.5 million adjusted EBITDA loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

continuing operations, adjusted ebitda, gaap, non-gaap

4 terms

continuing operations financial

"Preliminary unaudited financial results reflect continuing operations"

Continuing operations are the parts of a company's business that it expects to keep running into the future, excluding divisions or activities it has sold, closed, or classified as discontinued. Investors watch continuing operations because they show the company’s core ability to generate revenue and profit over time — like evaluating the healthy, ongoing crops on a farm rather than one-off harvests from fields you've already sold.

adjusted ebitda financial

"adjusted EBITDA loss of $2.2 million"

Adjusted EBITDA is a way companies measure how much money they make from their core operations, like running a business, by removing certain costs or income that aren’t part of regular business activities. It helps investors see how well a company is doing without distractions from unusual expenses or gains, making it easier to compare companies or track performance over time.

gaap financial

"generally accepted accounting principles in the United States of America (“GAAP”)"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

non-gaap financial

"Notes regarding Non-GAAP Financial Information"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

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Revenue Grew 66% to $4.8 Million; Gross Profit Turned Positive at $0.4 Million

MOCKSVILLE, N.C., Oct. 22, 2026 (GLOBE NEWSWIRE) -- 22nd Century Group, Inc. (Nasdaq: XXII), the only low nicotine tobacco company in the world, today announced select, preliminary and unaudited financial results and operating metrics for the third quarter ended September 30, 2026. The company anticipates releasing third quarter 2026 earnings on or before November 13, 2026, and will host a conference call for investors and financial analysts. The final date and details of the conference call will separately be released.

Preliminary Results

Preliminary unaudited financial results reflect continuing operations, excluding discontinued operations. All figures reported below are preliminary and subject to change.

• The Company expects third quarter 2026 net revenues of approximately $4.8 million compared with $2.9 million in the second quarter of 2026, an increase of 66%.
• The Company expects third quarter 2026 gross profit of approximately $0.4 million, compared to a loss of $(0.3) million in the second quarter of 2026.
• The company expects third quarter of 2026 operating expenses of $3.0 million, consistent with the second quarter of 2026.
• The company expects third quarter of 2026 operating loss of $2.6 million, compared to $3.3 million in the second quarter of 2026.
• The company expects third quarter of 2026 net loss of $2.6 million, compared to net loss of $3.3 million in the second quarter of 2026.
• The company expects third quarter of 2026 adjusted EBITDA loss of $2.2 million, compared to a loss of $3.5 million in the second quarter of 2026.
• Common shares outstanding as of October 22, 2026 are 3,416,441 and no warrants remain outstanding.
• Cash and equivalents were $3.9 million at quarter end.

“The third quarter marked another period of disciplined execution as we continued to increase consumer awareness and strengthen the commercial foundation for our Pinnacle VLN^® and 22^nd Century VLN^® low nicotine cigarettes,” said Larry Firestone, Chief Executive Officer of 22nd Century Group. “At retail, the growth in our same-store sales reports for Q3 2026 compared to Q2 2026 for the Pinnacle brand, both Pinnacle VLN^® and Pinnacle Pure cigarette products reinforced our belief that the market is looking for alternatives that change their smoking practice.”

Firestone added, "Today’s consumers are demonstrating through their early adoption of our VLN^® low nicotine cigarettes that a path to a low nicotine category in the market is being developed. It is our anticipation that multiple brands will adopt and carry a VLN^® branded set of sku’s in the future to pair with their standard brands. We believe that the future of smoking will include a low nicotine cigarette category of which we are the first and only player at the moment. The future of smoking is here. It’s VLN^®.”

Preliminary Financial Information

This news release includes financial information that is preliminary and has been prepared internally by management, and has not been audited, reviewed or compiled by our independent registered public accounting firm. 22^nd Century Group’s actual results remain subject to the completion of management’s final review and other closing and audit procedures and may differ materially from such financial information included in this news release due to the completion of our financial closing procedures, audit procedures and final adjustments. These preliminary estimates are not a comprehensive statement of our financial results for the third quarter 2026 and should not be viewed as a substitute for full financial statements prepared in accordance with GAAP. Accordingly, you should not place undue reliance on these preliminary financial results.

About 22nd Century Group, Inc.

22nd Century Group is pioneering the Tobacco Harm Reduction and Nicotine Reduction Movements by enabling smokers to take control of their nicotine consumption.

Our Technology is Tobacco

Our proprietary non-GMO reduced nicotine tobacco plants were developed using our patented technologies that regulate alkaloid biosynthesis activities resulting in a tobacco plant that contains 95% less nicotine than traditional tobacco plants. Our extensive patent portfolio has been developed to ensure that our high-quality tobacco can be grown commercially at scale. We continue to develop our intellectual property to ensure our ongoing leadership in the tobacco harm reduction movement.

Our Products

We created our flagship product, the VLN^® cigarette using our low nicotine tobacco, to give traditional cigarette smokers an authentic and familiar alternative in the form of a combustible cigarette that helps them take control of their nicotine consumption. VLN^® cigarettes have 95% less nicotine compared to traditional cigarettes and have been proven to allow consumers to greatly reduce their nicotine consumption.

VLN^® and Helps You Smoke Less^® are registered trademarks of 22nd Century Limited LLC.

Learn more at xxiicentury.com, on X (formerly Twitter), on LinkedIn, and on YouTube.

Learn more about VLN^® at tryvln.com and pinnaclevln.com.

Cautionary Note Regarding Forward-Looking Statements

Except for historical information, all of the statements, expectations, and assumptions contained in this press release are forward-looking statements, including but not limited to our full year business outlook. Forward-looking statements typically contain terms such as “anticipate,” “believe,” “consider,” “continue,” “could,” “estimate,” “expect,” “explore,” “foresee,” “goal,” “guidance,” “intend,” “likely,” “may,” “plan,” “potential,” “predict,” “preliminary,” “probable,” “project,” “promising,” “seek,” “should,” “will,” “would,” and similar expressions. Forward-looking statements include, but are not limited to, statements regarding (i) our expectations regarding regulatory enforcement, including our ability to receive an exemption from new regulations, and (ii) our financial and operating performance. Actual results might differ materially from those explicit or implicit in forward-looking statements. Important factors that could cause actual results to differ materially are set forth in “Risk Factors” in the Company’s Annual Report on Form 10-K filed on March 26, 2026 and Quarterly Reports on Form 10-Q filed May 7, 2026 and August 14, 2026. All information provided in this release is as of the date hereof, and the Company assumes no obligation to and does not intend to update these forward-looking statements, except as required by law.

Notes regarding Non-GAAP Financial Information

In addition to the Company’s reported results in accordance with generally accepted accounting principles in the United States of America (“GAAP”), the Company provides EBITDA and Adjusted EBITDA.

In order to calculate EBITDA, the Company adjusts net (loss) income by adding back interest expense (income), provision (benefit) for income taxes, and depreciation and amortization expense. Adjusted EBITDA consists of EBITDA adjusted by the Company for certain non-cash and/or non-operating expenses, including adding back equity-based employee compensation expense, restructuring and restructuring-related charges such as impairment, acquisition and transaction costs, and other unusual or infrequently occurring items, if applicable, such as inventory reserves and adjustments, gains or losses on disposal of property, plant and equipment, and gains or losses on investments.

The Company believes that the presentation of EBITDA and Adjusted EBITDA are important financial measures that supplement discussion and analysis of its financial condition and results of operations and enhances an understanding of its operating performance. While management considers EBITDA and Adjusted EBITDA to be important, these financial performance measures should be considered in addition to, but not as a substitute for or superior to, other measures of financial performance prepared in accordance with GAAP, such as operating (loss) income, net (loss) income and cash flows from operations. Adjusted EBITDA is susceptible to varying calculations and the Company’s measurement of Adjusted EBITDA may not be comparable to those of other companies.

Investor Relations & Media Contact
Daniel Otto  
Chief Financial Officer & Investor Relations   
22nd Century Group   
investorrelations@xxiicentury.com

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What are 22nd Century Group's preliminary third-quarter 2026 revenue and gross profit results?

22nd Century Group expects net revenue of approximately $4.8 million and gross profit of approximately $0.4 million for the third quarter of 2026. Revenue increased 66% from $2.9 million in the second quarter, while gross profit compares with a $0.3 million loss. The estimates cover continuing operations and are preliminary and unaudited.

When will XXII release its third-quarter 2026 earnings?

22nd Century Group anticipates releasing third-quarter 2026 earnings on or before November 13, 2026. The company will separately announce the final date and details of its investor and financial analyst conference call.